Cell C’s Blue label Warns of More Than 60% Decrease in Earnings

Cell C’s largest shareholder Blue Label has warned of a more than 60% decrease in earnings for the end of the year ended 31 May 2023. The group is dealing with the effect of balancing its books after the recapitalisation of Cell C, according to the BusinessLive report.

Blue Labels which owns 49% shares had said previously that it may soon take a controlling stake in the telecommunications company.

The telecommunications giant is reported to have struggled to make a profit since it entered the business in 2001.

Blue Label’s main business continues to perform well, with earnings per share expected to increase by 8% and headlines EPS by 9% for the full year despite excluding “extraneous contributions and non-recurring income from the current and prior years”, according to TechCentral.

“The core businesses of the Blue Label group have consistently demonstrated growth in revenue, gross profit and core headline earnings per share for the year ended 31 May 2023. Excluding the extraneous contributions of R523-million in the current year and the non-recurring income of R214-million in the prior year, core headline earnings increased by R78-million (9%) from R847-million to R925-million.”

The telecoms’ largest shareholder’s shares fell more than 5% on Thursday and going for R3.30 a share.

Source: TechCentral and BusinessLive